Vedanta Ltd & President of India-Backed Zinc Company to Build India’s First Zinc Tailings Reprocessing Plant at Rampura Agucha Mine

On August 18, 2025, Hindustan Zinc Limited announced that its board had approved the construction of India's first zinc tailings reprocessing plant. The plant will be located at the Rampura Agucha Mine in Bhilwara district, Rajasthan, which is the world's largest underground zinc mining operation. The new facility aims to extract valuable metals like zinc and silver from what was previously considered waste.

The new plant will have a capacity of 10 million tonnes per annum (Mtpa) and is expected to cost up to Rs 3,823 crores. The project is targeted for completion within 28 months. According to Hindustan Zinc's CEO, Arun Misra, the plant will enable the company to reprocess historical waste, store it responsibly, and support its goal of doubling production capacity. This initiative is part of a broader plan to expand refined metal capacity by 250 kilotonnes per annum (KTPA) and upgrade mines and milling infrastructure with an investment of nearly Rs 12,000 crores.

Hindustan Zinc is a Vedanta Group company and the world's largest integrated zinc producer. The company is headquartered in Udaipur and operates zinc, lead, and silver mines and smelters in Rajasthan and Uttarakhand. It supplies more than 40 countries and holds a market share of about 77 per cent in India's primary zinc market. Hindustan Zinc was ranked the world's most sustainable metals and mining company by the S&P Global Corporate Sustainability Assessment in 2024 for the second consecutive year. The company also became the first Indian metals and mining company to join the International Council on Mining and Metals (ICMM).

Based on the document provided, Hindustan Zinc Limited's board has approved the construction of India's first zinc tailings reprocessing plant. The facility, which is the first of its kind in India, will be located at the Rampura Agucha Mine in Rajasthan's Bhilwara district. This mine is already the world's largest underground zinc operation. The new plant aims to extract valuable metals like zinc and silver from waste material.

The plant will have a capacity of 10 million tonnes per annum (Mtpa) and is estimated to cost up to Rs 3,823 crores. The project is expected to be completed within 28 months. According to CEO Arun Misra, the plant will help the company reprocess historical waste and achieve its goal of doubling production capacity. This is part of a larger plan to expand refined metal capacity by 250 kilotonnes per annum (KTPA) and upgrade mines and milling infrastructure with a total investment of nearly RS 12,000 crores.

Hindustan Zinc is a Vedanta Group company and is the world's largest integrated producer of zinc. It is headquartered in Udaipur and operates zinc, lead, and silver mines and smelters across Rajasthan and Uttarakhand. The company supplies its products to over 40 countries and holds a substantial 77 per cent market share in India's primary zinc market. In 2024, it was recognized as the world's most sustainable metals and mining company by the S&P Global Corporate Sustainability Assessment for the second consecutive year. HZL also became the first Indian metals and mining company to join the International Council on Mining and Metals (ICMM).

The promoter of the company, Vedanta Ltd, holds 63.42 per cent stake and the President of India holds 27.92 per cent stake. The company has a market cap of over Rs 1.8 lakh crore and has been maintaining a healthy dividend payout of 164 per cent with a good return on equity (ROE) track record: 3 Years ROE 55.1 per cent. The stock is up by 12 per cent from its 52-week low of Rs 378.65 per share.

Disclaimer: The article is for informational purposes only and not investment advice.